English

EBRD recalibrates strategy for Belarus

The Board of Directors of the European Bank for Reconstruction and Development has recalibrated the EBRD’s operational approach to Belarus within its existing strategy in the wake of “the negative political developments surrounding the December 2010 presidential election and the international community’s continuing concerns regarding treatment of the political opposition, civil society and independent media” in the country, BelaPAN said.

As a result of its April meeting that focused on the country strategy approved in December 2009, the Board of Directors decided that the Bank would no longer consider investments in public sector projects in power generation or transport infrastructure, nor would it consider direct public sector engagement in the area of sustainable energy, the EBRD says on its website.

Other conditions – for example those concerning cooperation with state-owned banks or pre-privatization support – were also tightened, according to the report.

In accordance with the recalibrated strategy for Belarus, the EBRD’s operations in the country will now be confined to projects aimed at developing the private sector, improving environmental standards and supporting the Belarusian people. “The Bank’s operations will focus on projects that are shown to improve the living conditions of the Belarusian people,” the report says.

But no support, either financial or technical, is to be extended to the Belarusian authorities in any manner, it says.

The EBRD continues to urge the Belarusian authorities to make progress on the path of democratic and market-oriented reform in accordance with its commitments under Article One of the Agreement Establishing the Bank.

At the next review of the Bank`s operations in Belarus, which is scheduled for 2012, the Board of Directors will take stock of political and economic developments and have an opportunity to consider again the appropriate calibration of the country strategy, according to the report.